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Kodak emerges from bankruptcy with less debt and assets

For many Chattanooga residents, when they think of Kodak, they think of their cameras and film from their childhood. Also, when they heard about Kodak filing for bankruptcy, it probably felt like an end of an era.

Kodak, however, has recently exited bankruptcy, and it indeed looks like an end of an era as it appears most of the consumer products they have offered have been dropped from the company. The company, post-bankruptcy has dropped to 8,500 workers from 64,000, and is now focused on digital printing.

By filing bankruptcy, the company will likely be able to post around $2.5 billion in revenue and $167 million in gross earnings. It allows the company to drop a significant amount of debt, and move on as a smaller company. Without having filed for bankruptcy, it is likely the company would have completely gone out of existence because of the incredibly large amount of debt it had accumulated, and posting significant losses.

For many people, they may face a similar choice. Obviously, they would not cease to exist as a person because of the debt they owe, but, because of a serious increase in debt due to unexpected life changes, such as from medical expenses, credit card debt or other financial challenges, they may have no choice but to file for bankruptcy. The good news is that, unlike Kodak, most people get to keep all of their possessions and assets after filing.

However, some people, if they are trying to get rid of some property, such as a home, and have not been able to do so, could use filing for bankruptcy to get rid of a home or any other large asset they no longer feel they can afford. The filing will also act to stop repossession of an asset as well, at least for a specific period of time

Dealing with significant financial challenges is incredibly difficult for consumers to do on their own. Seeking out the right assistance is often the best way to get through it as easily as possible.

Source: The Post-Standard, "Kodak emerges from bankruptcy as tiny, boring company that takes consumers out of the picture: In business," Rick Moriarty, Sept. 5, 2013.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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